Mortgage applications decreased 2.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Feb. 1, 2019. The previous week’s results included an adjustment for the Martin Luther King Jr. Day holiday.

The Market Composite Index, a measure of mortgage loan application volume, decreased 2.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 12 percent compared with the previous week. The Refinance Index increased 0.3 from the previous week. The seasonally adjusted Purchase Index decreased 5 percent from one week earlier. The unadjusted Purchase Index increased 13 percent compared with the previous week and was 2 percent lower than the same week one year ago.

“Mortgage rates for all loan types declined last week, with the 30-year fixed mortgage rate falling seven basis points to 4.69 percent, the lowest rate since April 2018,” said Joel Kan, associate vice president of industry surveys and forecasts. “Despite more favorable borrowing costs, and after a three-week surge in activity, purchase applications have slowed over the past two weeks, and are now almost two percent lower than a year ago. However, moderating price gains and the strong job market, including evidence of faster wage growth, should help purchase growth going forward.”

The refinance share of mortgage activity decreased to 41.6 percent of total applications from 42.0 percent the previous week. The adjustable-rate mortgage share of activity decreased to 7.8 percent of total applications.

The FHA share of total applications remained unchanged from 10.5 percent the week prior. The Veterans Affairs share of total applications decreased to 10.0 percent from 10.7 percent the week prior. The Department of Agriculture share of total applications increased to 0.5 percent from 0.4 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 4.69 percent from 4.76 percent, with points decreasing to 0.45 from 0.47 (including the origination fee) for 80 percent loan-to-value ratio  loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) decreased to 4.50 percent from 4.60 percent, with points increasing to 0.28 from 0.24 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.70 percent from 4.77 percent, with points decreasing to 0.57 from 0.58 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.11 percent from 4.16 percent, with points increasing to 0.47 from 0.46 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 4.04 percent from 4.14 percent, with points remaining unchanged from 0.37 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

Consolidated Analytics has acquired Carrington Property Services, bringing the company a step closer to offering a one-stop services solution to clients. The acquisition, which was finalized Feb. 1, 2019.

Consolidated Analytics is adding REO asset management, rental management and valuation services for non-performing borrowers to a product line that includes property valuation, loan due diligence, mortgage fulfillment and advisory services to the real-estate finance industry.

"Mortgage industry participants are looking for a streamlined, scalable, and centralized way to effectively evaluate and manage their real estate assets," said Arvin Wijay, CEO of Consolidated Analytics. "The acquisition of [Carrington Property] boosts our infrastructure, resources, technology, and support functions, which will improve productivity and accelerate returns at every aspect of the asset management lifecycle."

In recent years, Consolidated Analytics has enhanced its mortgage-services platform by expanding its internal operations, technology and servicing capabilities. Also, through strategic acquisitions in Equitable Mortgage Solutions, a mortgage fulfillment provider, and OpEXNow, a leading mortgage operations advisory firm.

Affiliates of Eos Partners and Seal Rock Partners financed the acquisition of CPS. Eos is an alternative investment firm that actively invests in the private equity, credit and public equity markets. Seal Rock is the family-backed private equity investment affiliate of Jonathan and Edward Cohen that acquires and builds businesses with equity investments in growth companies of $10 to $50 million.

"By re-investing in our business, we can offer our clients more value, improved execution, and a better customer experience," said Rudy Zabran, chief revenue officer at Consolidated Analytics. "We have carefully planned out our growth path to ensure our clients stand to gain the most."

The largest holding in KKR & Co. Inc. portfolio is First Data Corp., the company Fiserv plans to acquire. KKR owns more than $998 million dollars of the stock ,or 10.1 percent of the portfolio, according to the firm’s most recent earnings report. That investment is made through private equity funds the company manages.

“Since December 31 through last night, First Data stock price has gone up by about $7.50 per share, or a 45% increase,” said William Janetschek, CFO of KKR, during the firm’s recent fourth quarter and year-end analyst call. Shares of First Data will be exchanged with Fiserv shares. The acquisition was announced in mid-January, after the end of the third quarter. Henry Kravis, co-chairman and co-chief executive officer of KKR, sits on First Data’s board.

[caption id="attachment_9693" align="alignright" width="300"] William Janetschek[/caption]

In addition, an affiliate of Kohlberg Kravis Roberts & Co. L.P., New Omaha Holdings L.P., which controls around 39% [including KKR & Co's shares] of the outstanding First Data common stock and 86% of the voting rights of First Data, has entered into a voting agreement in support of the transaction. Upon closing, New Omaha Holdings will own around 16% of the outstanding common stock of the combined company.

Among First Data’s clients in the mortgage arena is Ellie Mae, who integrated secure payments technology to process mortgage and appraisal fees That allows Ellie Mae customers to accept payment for loan origination, processing, underwriting, and credit report costs through the company's platform.

After the merger is complete, Fiserv will invest $500 million to enhance solutions and accelerate growth. It expects to generate $4 billion in cash flow in the third year after the transaction closes.

Efficiency gains will be around $900 million over five years, and Fiserv will refinance $17 billion in debt that First Data will have on its books when the deal closes.